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NEPRA allows K-Electric to raise tariff

MM News Staff by MM News Staff
March 15, 2021

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has permitted K-Electric to raise power tariffs by up to Rs1.97 per unit.

According to a statement issued by NEPRA, since the federal government had a uniform tariff policy across the country, the impact of quarterly adjustments would be adjusted in the tariff differential subsidy for K-Electric. hence, they may not have any impact on the consumers.

NEPRA, among other adjustments, did not permit the write-off claim of K-Electric worth Rs4.051 billion. NEPRA determined the quarterly tariff variation for the period April 2019 to March 2020, applicable to the period July 2019 to June 2020.

The authority permitted a tariff amplifies of Rs0.78 per unit for the April-June 2019 quarter, Rs1.97 per unit for July-September 2019, and Rs0.61 per unit for January-March 2020. NEPRA, however, decided to lessen the electricity price for the October-December 2019 quarter by Rs0.02 per unit.

 “The determinations are in accordance with the mechanism given in K-Electric’s multi-year tariff whereby changes in fuel prices, generation and power purchase mix are passed through along with certain annual adjustments,” read the statement.

It is worth mentioning here that K-Electric had already incurred these costs and have paid the costs to fuel suppliers and for external power purchases.

Pursuant to a notification of the determined multiyear tariff, K-Electric filed its quarterly adjustment request on account of the power purchase price, indexation of O&M costs, adjustment of transmission and distribution losses, etc for the quarters ended June 2019 and September 2019 along with supporting documents

Besides, K-Electric also requested write-offs amounting to Rs4, 051 million (gross) for FY2018-19. The net amount claimed by K-Electric after accounting for the recovery made through the write-off component built in the multi-year tariff for 2017 i.e. Rs2, 994 million, was Rs1, 056 million.

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